DNOW (DNOW) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 EBITDA of $51 million (8.1% of revenue) and revenue of $628 million, up 5% sequentially and at the top end of guidance, despite market headwinds.

• Net income attributable to stockholders was $25 million ($0.23 per diluted share); adjusted net income was $29 million ($0.27 per diluted share).

• Announced a definitive all-stock merger agreement to acquire MRC Global, valued at $1.5 billion, expected to close in Q4 2025, targeting $70 million in annual cost synergies within three years.

• Maintained a debt-free balance sheet with $232 million in cash and $582 million in total liquidity as of June 30, 2025.

• Repurchased $27 million in shares year-to-date; share repurchase program paused pending merger completion.

Financial highlights

• Q2 2025 revenue: $628 million, up 5% sequentially; U.S. revenue: $528 million, Canada: $48 million, International: $52 million.

• EBITDA: $51 million (8.1% of revenue), up 11% sequentially, with 13 consecutive quarters at or above 6.9% EBITDA margin.

• Net income: $25 million ($0.23 per diluted share); adjusted net income: $29 million ($0.27 per diluted share).

• Free cash flow: $41 million in Q2; $210 million generated over the last 12 months.

• Gross margin: 22.9%, up 110 bps year-over-year.

Outlook and guidance

• Q3 2025 revenue expected to increase low single-digits sequentially; EBITDA to approach 8% of revenue.

• Full-year 2025 revenue expected to be flat to up high single-digits vs. 2024; EBITDA could approach 8% of revenue.

• Free cash flow target for 2025 reaffirmed at $150 million.

• Q4 2025 expected to see typical seasonality and budget exhaustion, with a 5% sequential decline.

• Guidance reaffirmed for full-year 2025 revenue and EBITDA.